1. Tree Valuation Arboriculture Spring 2001 J.G. Mexal

2. Arboriculture The Value of Trees / J. Geiger Jul-Aug’03 40 yr-old tree pays in benefits > $60/yr –Intercepts 2,143 gal stormwater ($23) –Removes 2.5 lbs pollutants ($13) –Reduces energy bills by 7% ($8) –Increases home value 1% ($15) –Maintenance costs ~ $8 Small tree > $16 Large tree > $78

3. Arboriculture Tree Valuation/Methods/ ISA 2000 Cost –based on replacement or repair costs Income –used only on income producing property Market –“real estate appraisal” approach

4. Arboriculture Tree Valuation/Methods/ ISA 2000 Factors in tree appraisal –species (qualitative) –condition (qualitative) –size (quantitative) –location (qualitative) 100% given for native species

5. Arboriculture Tree Valuation/Methods/ ISA 2000 Rating Tree Species Climate –cold hardiness –drought tolerance –resistance to ice, wind Growth –tolerance to stress –vigor –structural strength –life expectancy –pruning requirements Soils –structure and texture –drainage –water stress –flooding tolerance –pH –nutrition Problems –diseases –insects –air pollution

6. Arboriculture Tree Valuation/Methods/ ISA 2000 Rating Tree Species Mulberry Eucalyptus Montezuma cypress Globe willow Afghan pine Ponderosa pine Piñon Arizona ash Pecan Palms Bolleana poplar Chinaberry Chinese pistache Chitalpa Desert willow Arizona sycamore

7. Arboriculture Tree Valuation/Methods/ ISA 2000 Growth habits

8. Arboriculture Tree Valuation/Methods/ ISA 2000 Plant features

9. Arboriculture Tree Valuation/Methods/ ISA 2000 Environmental Tolerance

10. Arboriculture Tree Valuation/Methods/ ISA 2000 Condition Rating –structural integrity genetic predisposition roots shoots –plant health pesticides soils

11. Arboriculture Tree Valuation/Methods/ ISA 2000 Condition Rating Key 1= no problems 2=minor problems 3=major problems 4=extreme problems Total = 8-32 (score  32)x100

12. Arboriculture Tree Valuation/Size/ ISA 2000 DBH

13. Arboriculture Tree Valuation/ Trunk Area / ISA 2000 Area = πr 2 = πd 2 /4 = 0.785d 2 Adjusted Trunk Area = –used for large trees (> 30” DBH) –empirically determined (no real data) –ATA = - 0.334d 2 + 69.3d - 1087

14. Arboriculture Tree Valuation/ Estimating Size / ISA 2000 Stump Diameter (in) DBH (in) Black oak (Q. velutina)

15. Arboriculture Tree Valuation/Location/ ISA 2000 Location Rating (0-100) –Sum of Site, Contribution and Placement  3 –Site: Very High = 90-100% High= 80-89% Average= 70-79% Low= 60-69% Very Low= 10-59% –Contribution –Placement

16. Arboriculture Tree Valuation/Location/ ISA 2000 Accent structures (A) Aesthetic values (A) Vistas (A) Frames view (A) Defines space (A) Historic, rare or unusual (A) Erosion control (A,F) Screens view (A,F) Wildlife attraction (A,F) Cleanliness (A,F) Air purification (F) Allergenic (F) Pollution control (F) Noise attenuation (F) Light & glare shield (F) Safety barrier (F) Shade & cooling (F) Traffic control (F) Windbreak (F) Contribution Rating Factors (0-100)

17. Arboriculture Tree Valuation/Location/ ISA 2000 Placement Rating (0-100) 1 specimen may have greater value than several in cluster one in a row of formal planting placed under utility lines back yard vs front yard

18. Arboriculture Tree Valuation/Cost Approach Replacement Cost Method Trunk Formula Cost of Repair Cost of Cure

19. Arboriculture Tree Valuation/Cost Approach Information needed: –cost of replacement tree largest available specimen –cost of installation planting, shipping, maintenance, profit –appraisal of existing tree species, size, condition, & location

20. Arboriculture Replacement Cost Approach Field Observations: 1. Species__________ 2. Condition ________% 3. Trunk diameter ____cm or circumference____cm 4. Location % = [Site____% + Contribution ___% + Placement ___%]  3 = ___% 5. Removal & Cleanup costs _____

21. Arboriculture Replacement Cost Approach/con’t Appraisal Information: 6. Species rating __________% 7. Replacement plant size (Diameter) ___cm 8. Replacement plant cost $_____ 9. Installation cost $_____

22. Arboriculture Replacement Cost Approach/con’t Appraisal Calculations: 10. Installed plant cost (8+9) = $_____ 11. Adjusted cost (10x6x2x4) = $_____ (cost x species x condition x location) 12. Removal & cleanup costs = $_____ 13. Total appraised value (11+12) $_____

23. Arboriculture Replacement Cost Approach-example Field Observations: 1. Species__Chinese pistache 2. Condition __70____% 3. Trunk diameter _15_cm or circumference_47_cm 4. Location % = [Site_60_% + Contribution _75% + Placement _60%]  3 = _65% 5. Removal & Cleanup costs _120__

24. Arboriculture Replacement Cost Approach/con’t Appraisal Information: 6. Species rating ___80_____% 7. Replacement plant size (Diameter) _15cm 8. Replacement plant cost $_780__ 9. Installation cost $_1900__

25. Arboriculture Replacement Cost Approach/con’t Appraisal Calculations: 10. Installed plant cost (8+9) = $_2680____ 11. Adjusted cost (10x6x2x4) = $_976____ (cost x species x condition x location) 12. Removal & cleanup costs = $_120____ 13. Total appraised value (11+12) $_1096__

26. Arboriculture Trunk Formula Approach Field Observations: 1. Species__________ 2. Condition ________% 3. Trunk diameter ____cm or circumference____cm 4. Location % = [Site____% + Contribution ___% + Placement ___%]  3 = ___%

27. Arboriculture Trunk Formula Approach/con’t Appraisal Information: 5. Species rating __________% 6. Replacement plant size ___cm 2 7. Replacement plant cost $_____ 8. Installation cost $_____ 9. Installed tree cost (7+8) $_____ 10. Unit tree cost $_____/cm 2

28. Arboriculture Tree Valuation/ Trunk Area / ISA 2000 DBH (in) Area (in 2 )

29. Arboriculture Trunk Formula Approach/con’t Appraisal Calculations: 11. Appraises trunk area (or ATA) ____ cm 2 12. Appraises trunk increase (11-6)____ cm 2 13. Basic tree cost ((12x10)+9)= $_____ 14. Total appraised value (13x5x2x4) $_____

30. Arboriculture Trunk Formula Approach example Field Observations: 1.Species_ Texas red oak 2.Condition __80____% 3. Trunk diameter _45_cm or circumference____cm 4. Location % = [Site_90_% + Contribution _80% + Placement _70%]  3 = _80__%

31. Arboriculture Trunk Formula Approach/con’t Appraisal Information: 5. Species rating __75______% 6. Replacement plant size _31 cm 2 7. Replacement plant cost $_585_ 8. Installation cost $_1200_ 9. Installed tree cost (7+8) $_1785 10. Unit tree cost $_19__/cm 2

32. Arboriculture Tree Valuation/ Trunk Area / ISA 2000 DBH (in) Area (in 2 )

33. Arboriculture Trunk Formula Approach/con’t Appraisal Calculations: 11. Appraised trunk area (or ATA) _1590 cm 2 12. Appraised trunk increase (11-6)_1559 cm 2 13. Basic tree cost ((12x10)+9)= $31,406 14.Total appraised value (13x5x2x4) $15,075 Now, check this using English units, and find out what is wrong!!!

34. Arboriculture Compound Cost Approach Annual interest rates compounded: Years5%7%9% 11.051.071.09 21.101.141.19 31.161.231.30 41.221.311.41 51.281.401.54 61.341.501.68 71.411.611.83 81.481.721.99

35. Arboriculture Compound Cost Approach/con’t 1. Site clean up costs$_____ 2. Plant cost ($ x condition x location x interest) $____ 3. Installation ($ x interest)$____ 4. Maintenance cost ($/yr x interest)$____ –maintenance cost should decrease over time –Year 1 = $80 x 1.22 =$ 97.60 –Year 2 = $60 x 1.15= $ 69.00 –Year 3 = $60 x 1.10= $ 66.00 –Year 4 = $40 x 1.05= $ 42.00 Subtotal= $274.60

36. Arboriculture Compound Cost Approach/ example 1. Site clean up costs$_ 50____ 2. Plant cost ($ x condition x location x interest) $_178___ 3. Installation ($ x interest)$_159__ 4. Maintenance cost ($/yr x interest)$_275___ –maintenance cost should decrease over time –Year 1 = $80 x 1.22 =$ 97.60 –Year 2 = $60 x 1.15= $ 69.00 –Year 3 = $60 x 1.10= $ 66.00 –Year 4 = $40 x 1.05= $ 42.00 Subtotal= $274.60